a bank determines that it is prudent to hold $2 for every $100 in deposits. The bank holds desired reserves of $9,000 and surplus reserves of $11,000.
a bank determines that it is prudent to hold $2 for every $100 in deposits. The bank holds desired reserves of $9,000 and surplus reserves of $11,000.
Chapter19: Money Creation
Section: Chapter Questions
Problem 4SQP
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a bank determines that it is prudent to hold $2 for every $100 in deposits. The bank holds desired reserves of $9,000 and surplus reserves of $11,000. What is the bank's desrired reserve ratio and its actual reserves? The Bank's desired erserve ratio is 2 percent. The bank's actual reserves are $_____?
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